Aviat Networks, Inc., the leading expert in wireless transport solutions, and Redline Communications Group Inc. (“Redline”), a leading provider in mission-critical data infrastructure, announced the completion of the acquisition of Redline by a subsidiary of Aviat pursuant to a statutory plan of arrangement under the Canada Business Corporations Act (the “Arrangement”), which now enables Aviat to offer its customers an integrated end-to-end offering for wireless access and transport.
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The Arrangement reinforces Aviat’s stated strategy of expanding their market leadership and share of wallet in mission-critical and industrial Private Networks, by leveraging Aviat’s sales channel to address the $8 billion Private LTE/5G addressable market, as well as Oil & Gas, and Transportation verticals.
“We are very pleased to close this transaction so that we will now be able to offer our customers a complete solution, including Private LTE/5G,” said Peter Smith, CEO of Aviat Networks. “Redline’s leading portfolio of industrial wireless access solutions will enable Aviat to expand our offering and addressable market globally.”
Aviat will include Redline in its FY23 guidance which will be provided in the next earnings call. Redline was not part of Aviat during FY22 and will not be included in Aviat’s forthcoming FY22 Q4 results. For clarity, Aviat would like to reaffirm its previous FY22 guidance of $296-$300 million in revenue and $37-$39 million in Adjusted EBITDA.
The Redline common shares (the “Common Shares”) are expected to be delisted from the Toronto Stock Exchange (the “TSX”) on or about July 7, 2022 and Redline has made an application to cease to be a reporting issuer under applicable Canadian securities law.
Under the terms of the Arrangement, all of the issued and outstanding Common Shares were acquired by Aviat in exchange for consideration of CAD$0.90 per Common Share (approximately USD$0.72 per Common Share), in an all-cash transaction.
Full details of the Arrangement and certain other matters are set out in the management information circular of Redline dated May 18, 2022 (the “Information Circular”). Registered holders of Common Shares should send their completed and executed letters of transmittal and Redline share certificates to the depositary, Computershare Investor Services Inc., as soon as possible in order to receive the consideration to which they are entitled to under the Arrangement. A copy of the letter of transmittal, Information Circular, and other transaction documentation are available under Redline’s profile